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Global and Regional Trends Impacting SMPs

Global and Regional Trends Impacting SMPs. Christopher Arnold Technical Manager, SME & SMP Affairs New Delhi October 10, 2014. Agenda. IFAC SMP Quick Poll Insights from IFAC Research The Role of SMPs in Providing Business Support to SMEs Other Research

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Global and Regional Trends Impacting SMPs

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  1. Global and Regional Trends Impacting SMPs Christopher Arnold Technical Manager, SME & SMP Affairs New Delhi October 10, 2014

  2. Agenda • IFAC SMP Quick Poll • Insights from IFAC Research • The Role of SMPs in Providing Business Support to SMEs • Other Research • ACCA/IMA Digital Darwinism: Thriving in the Face of Technology Change • Edinburgh Group research, Growing the Global Economy through SMEs • Resources

  3. Insights from IFAC SMP Quick Poll I • Latest poll Nov-Dec 2013 attracted over 3,700 respondents • Report at www.ifac.org/publications-resources/ifac-smp-quick-poll-2013-year-end-round • Poll was conducted in 17 languages • Responses are heavily skewed in favor of practitioners from Europe and Asia working in smallest categories of practice

  4. Insights from IFAC SMP Quick Poll II • What is the biggest challenge faced by your SME clients?

  5. Insights from IFAC SMP Quick Poll III • What is the biggest challenge your practice is facing right now?

  6. Insights from IFAC SMP Quick Poll IV • What is the fastest growing source of revenue for your practice?

  7. Insights from IFAC SMP Quick Poll V • What is the main driver of your practice’s profitability?

  8. Insights from IFAC SMP Quick Poll VI • How does your practice expect business to be in 2014 compared to 2013? • Next IFAC SMP Global Survey - 3 November 2014

  9. Insights from IFAC Research I • IFAC Research on the role of SMPs in providing business support to SMEs • Extensive literature review • Interviews with accountants across the world

  10. Insights from IFAC Research II • SME demand for business advice • Owner-managers can be reluctant to readily seek advice • SMEs lack of in-house expertise • Change in enterprise or external environment • Regulatory demands extending outside financial compliance • Growing information needs of SMEs • Accountants as external advisers • Most studies worldwide indicate accountants are preferred and first source of advice for SMEs

  11. Insights from IFAC Research III • Reasons for choosing an accounting firm, especially SMP • Recognition—SMPs face similar compliance burden as SMEs • Technical competency • Trust • Proximity and responsiveness • SMEs wanting a one-stop shop

  12. Insights from IFAC Research IV • Changing environment and challenges to traditional provision of services • Consolidation within the accountancy profession • Shift in regulatory environment: fewer audits • Shift in the nature of the SME population • Reluctance of some SMPs to provide services other than core compliance • SMPs will have to diversify to survive as key advisers for SMEs

  13. Other Research I – ACCA / IMA • ACCA/IMA Report on Top 10 technologies that have the potential to considerably reshape the accountancy profession and business landscape: • Mobile - Cloud • Big data - Virtual and augmented reality • Payment Systems - Artificial intelligence and robotics • Cyber security - Educational • Social - Digital service delivery

  14. Other Research II – ACCA / IMA • Research – developments in technology: • 81% expect change “to some extent” or “to a great extent” over next decade • 18% expect “a total transformation” • 2,100 ACCA/IMA Members • The profession must anticipate the changing needs of business • Accountants and finance professional must be open to the changes created by the cloud, mobile and social platforms and face up to demands of cybercrime

  15. Other Research III – Edinburgh Group • Edinburgh Group research, Growing the Global Economy through SMEs • SMEs increasingly international but need more support • SMPs can help with: • Identifying markets • Navigating red tape • Facilitating finance • Dealing with FOREX

  16. References—General • IFAC SMP Committee: www.ifac.org/SMP • Follow us on Twitter: IFAC_SMP • Join us on LinkedIn: IFAC SMP Community • Global Knowledge Gateway: www.ifac.org/Gateway • Resources and tools (all): www.ifac.org/about-ifac/small-and-medium-practices-committee/smp-resources-and-tools • IFAC Translations and Permissions: www.ifac.org/about-ifac/translations-permissions

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